Bringing meaningful economic change to the most vulnerable
A sustainable and inclusive economy that ‘leaves no one behind’ is more important than ever. Yet economic inclusion is one of the toughest challenges faced by planners: transforming the economic lives of the world’s poor and extremely poor to help them ‘graduate’ from poverty. Especially in the context of climate change, conflict or shocks such as the COVID-19 pandemic, over 700 million people worldwide face the trap of extreme poverty. Poverty can span generations, leaving families without hope of a way out.
In strengthening economic inclusion, it is important to recognise ‘poverty traps’ and to realise that unleashing the productive potential of people living in poverty involves the removal of multiple constraints through a multidimensional response.
Economic inclusion programmes therefore support households with a strong push of coordinated interventions, including cash or in-kind transfers, skills training and coaching, access to finance, and links to market support. Safety nets, livelihoods, jobs and financial inclusion programmes can have a positive impact on income, assets and savings. Economic inclusion programmes tend to give high priority to women’s economic empowerment as a key driver for change.
Germany is a major supporter of economic inclusion, and the largest contributor to the World Bank-initiated Partnership for Economic Inclusion. You can discover more on Germany’s support to economic inclusion in the articles and studies on this page.